Attention Bakeries: The Potential for Hot Coffee

Quick quiz: What costs 24 cents to make but is in such high demand that you can sell it for $3 a cup? Answer: specialty coffee.

Bakeries are catching on to this fast, as more incorporate beverage programs into their business. Increasingly, bakeries are finding local roasters to supply them with unique blends or working with national suppliers that can offer optimum value.

Specialty coffee is defined as a coffee that has no defects and has a distinctive flavor, according to the Specialty Coffee Association of America (SCAA). And demand for specialty coffee continues to heat up.

From 2001 to 2006, specialty coffee sales in the United States rose from $8.3 billion to $12.3 billion, according to SCAA and Mintel Group data. That marks nearly a 50 percent jump. There are now more than 15,500 coffee cafes in America, averaging $550,000 in annual sales.

Bakery chains like Dunkin’ Donuts have become so enamored with coffee that they seem to be more about beverages than baked goods nowadays. Dunkin’ Donuts sells 2.7 million cups of coffee every day, making it the No. 1 retailer of coffee by the cup, according to the company.

And don’t just sell coffee. Market it. Retail bakeries like La Bonbonniere Bake Shops in New Jersey boost their morning sales with breakfast specials: one donut and a small cup of coffee for $1.50, or a muffin and small coffee for $2.50. Never forget the power of a meal deal. Make it simple for people to order, and they usually will trade up for something more.

According to the SCAA, specialty coffee offers a unique flavor because of the micro-climates that produce it, similar to the slight variances you will find in the flavors of fine wines. Roasting presents the next opportunity to define your coffee as truly special. Every roaster has the potential to express itself in a signature way.

Another tip is to hire a local coffee expert for advice on your beverage program. Porto’s Bakery in Los Angeles worked with an award-winning barista in Los Angeles for ways to improve the quality of their beverages. Beverages now account for 10 percent of total sales at Porto’s Burbank location.

The following are relevant statistics from the SCAA about the specialty coffee business, to help you understand the common terms and examine the opportunity to add or enhance your beverage offerings.

****Definitions****:

Barista – a person who is a master of the espresso machine and makes coffee as a profession

Cappuccino – a classic blend of coffee and steam milk, named about the brown robes of the Capuchin monks

Cupping – the process used by coffee tasting specialists to judge and evaluate coffee beans

Espresso – a dark, rich, full-bodied coffee made when finely ground Italian or dark-roasted coffee is processed with a special machine that forces a small amount of water at high pressure through a special filter

Green coffee – unroasted coffee

Organic coffee – certified by independent agencies as organically grown, processed, stored and roasted

****Statistics****:

Americans drink more than 300 million cups of coffee each day, with 75 percent of those being home-brewed.

16 percent of American adults consume specialty coffee on a daily basis, up from 13 percent in 2002.

63 percent of American adults "occasionally" consume specialty coffee.

The vast majority of the world’s coffee is the Arabica species.

It takes about 42 coffee beans to make an average serving of espresso.

Espresso contains less caffeine than a regular serving of drip coffee because the water is in contact with the grounds for only 20 to 25 seconds and extracts less caffeine.

70 percent of U.S. adults consider coffee quality and convenient location as the most important characteristic of their favorite coffeehouse.